This story is part of AIN's continuing coverage of the impact of the coronavirus on aviation.
Global aircraft brokerage Jetcraft projected nearly a $50 billion market for preowned business jets through 2024 in its five-year preowned market forecast released today. “Covid-19 has affected many industries, including our own,” said Jetcraft owner and chairman Jahid Fazal-Karim. “However, business aviation has started to recover and the reduction in commercial flight activity provides a real opportunity for the sector to further expand its customer base and secure long-term prosperity.”
Despite this year’s reduced international trade activity, the World Trade Association forecasts that volume will rebound in 2021 and the number of ultra-high-net-worth individuals is expected to grow by 5 percent a year through 2024. Based on these estimates, along with its own past transactional data and customer insights, the Jetcraft report calls for more than 10,000 preowned jet transactions worth $48.8 billion by 2024. While the number of transactions predicted is nearly 1,000 more than over the past five years, the estimated value of those transactions is $3.2 billion less.
“We are forecasting a continued increase in large jet transactions, albeit at a slower pace than in previous years,” noted Fazal-Karim, adding that younger and high-net-worth buyers, as compared to corporate or governmental customers, are more likely to invest in this aircraft segment. “These trends truly demonstrate the potential of the large jet category, which remains poised for long-term growth.”